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2015 (10) TMI 729 - AT - Income TaxReopening of assessment - disallowance made under sec.40(a)(ia) for non-deduction of tax at source - Held that:- As disallowance made under Sec.40(a)(ia) also becomes part of income in the final computation. Definition of income in sec.2(24) being inclusive and not exhaustive, additions made on account of disallowances also would fall under it, not withstanding sub-clause(va) to (ve) thereof which specifically mentions items falling under 28(iiia)(iiib),(iiic),(iv) and (v). We cannot also say that the reason mentioned by AO was irrelevant, especially since originally the return was subjected only to processing under section 143(1) of the Act. As for the ground raised by the assessee the objection raised by it on the notice under section 148, was not dealt with by the AO, it is necessary to have a look at such objection as a reading of it does not show any specific objection raised by the assessee for the AO to deal with, except narrating the course of events in its appeals on orders of tax deduction officer. - Decided against assessee. Applicability of provision of section 40a(ia) - as per the assessee the recipients furnished Form 15G/H and it had no obligation to deduct tax - Held that:- Assesee had obtained 15G/H form from the recipients, though filed belatedly. Irrespective of the date of filing these forms, assertion made therein by the payees that they were not having taxable income or were having income below taxable limits has not been found to be incorrect. When assessee was well aware that recipients had no taxable income, just because the declarations in Form 15G/H were obtained late, it cannot be fastened with the consequence that arise for non-deduction of tax at source. We cannot say that there was a failure on the part of the assessee that would attract the rigours of Sec.40a(ia). - Decided in favour of assessee.
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